- Renault’s 1Q revenue stood at EU11.71 billion, indicating an increase of 1.8% year on year (y/y), outpacing the estimated EU11.43 billion.
- The automotive revenue, however, decreased by 0.7% y/y to come in at EU10.45 billion, a slight jump over the estimated EU10.35 billion.
- Global vehicle sales rose by 2.6% y/y, totaling 549,099 units.
- Despite the scenario, Renault maintains its year forecast, still anticipating the operating margin to reach at least 7.5%, nearly in line with the estimated 7.55%.
- The company also reiterates its prediction for free cash flow of at least EU2.5 billion, compared to the forecasted EU2.62 billion.
- The firm’s CFO implies that with a strong order book ending in March and upcoming product launches, sequential acceleration in activity is expected. This, coupled with cost reduction, would boost the financial performance.
A look at Renault SA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Renault SA, a company known for designing, manufacturing, and marketing both passenger cars and light commercial vehicles, has an overall positive long-term outlook based on the Smartkarma Smart Scores. With a strong score of 5 in the Value category, Renault SA is perceived to offer good value for investors. This indicates that the company’s stock may be currently undervalued relative to its intrinsic worth. Furthermore, the high score of 5 in Momentum suggests that Renault SA has shown strong positive momentum in its stock price, which could potentially indicate continued upward movement.
In terms of growth potential, Renault SA received a solid score of 4, indicating that the company is well-positioned for future growth opportunities. However, its scores of 2 in both Dividend and Resilience suggest that the company’s dividend payouts and overall resilience may not be as strong as some of its other factors. Despite these lower scores, the positive outlook on value, growth, and momentum bodes well for Renault SA‘s future performance in the market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
